Libya’s NOC Proposes Ambitious New Gas Company in Benghazi to Combat Looming Energy Crisis
The National Oil Corporation (NOC) has unveiled plans to establish a major new gas exploration and production company named Jalyanah, headquartered in Benghazi, as Libya races to address a critical energy shortage threatening the nation by 2026.
Acting Chairman Masoud Suleiman announced the strategic initiative in a letter outlining the company’s focus on developing gas discoveries in the lucrative MN 7 concession, currently operated by the Arabian Gulf Oil Company. The move comes as high-stakes negotiations continue with a powerful international consortium featuring Italy’s Eni, France’s TotalEnergies, the UAE’s ADNOC, and Turkey’s TPAO.
The NOC issued a stark warning that western Libya faces a dramatic decline in gas supplies by the end of 2026, making this project critical for the nation’s energy security. The new company aims to fast-track production from undeveloped gas fields to meet surging domestic demand for electricity and industry while reducing the country’s costly reliance on diesel imports.
Beyond addressing domestic needs, the project is designed to protect Libya’s state finances, fulfill crucial export commitments to Italy, and avoid potentially devastating penalty payments that could cripple the national economy.
Source: libyaobserver.ly
